New Delhi: The risk of tariffs of up to 100% being imposed on India is rising once again. On Friday, US President Donald Trump signed the legislation regarding sanctions on Russia and Iran into law. He signed the proposal two days after it was passed by the US House of Representatives.
Under the new law, the President is empowered to impose tariffs of up to 100% on imports from the five major countries that purchase oil from Russia. India is currently included in this list. Trump’s tariff policy has been a subject of discussion for quite some time, causing friction even with some of America’s allies.
End of 18-month-long political process
With President Trump signing this law, the political process regarding new sanctions on Russia, which had been underway for nearly 18 months,s has finally concluded. It is worth noting that this initiative began in April 2025, when Senators Lindsey Graham and Richard Blumenthal introduced a version of the bill in the US Senate.
The primary objective behind this bill is believed to be undermining Russia’s export earnings from the energy sector. A war has been ongoing between Russia and Ukraine for the past four years. While the US has been pressuring Russia to end the conflict, no resolution has been reached so far.
No specific country named in the law
The US has not directly singled out any specific country in this law. Under its provisions, the US Trade Representative, in consultation with the Secretary of State and the Secretary of Energy, must identify the five countries that have imported the highest total volumes of crude oil and gas from Russia over the preceding 12 months.
Additionally, the list of these countries will be reviewed every six months (180 days). The specific tariff rate to be applied will be at the President’s discretion, though it can reach a maximum of 100%. The law will not mandate the President to impose tariffs on countries purchasing energy from Russia.
Increased pressure from Blumenthal on China and India
Supporters of this legislation, particularly Senator Richard Blumenthal, have also urged China and India to halt energy purchases from Russia. Following the bill’s passage in the House of Representatives, Blumenthal stated on Wednesday that China and India must alter their stance. Furthermore, they were advised to source their oil and gas from elsewhere.
Provisions for exemptions
It is worth noting that the legislation includes provisions to shield US allies in Europe from the sanctions. Exemptions may be granted to countries whose imports of natural gas from Russia account for less than1 per cent of Russia’s total gas exports and which are taking significant steps to reduce these imports.
Additionally, the law includes a provision to impose tariffs of up to 55 per cent on goods imported directly from Russia. Moreover, the legislation authorises the President to grant exemptions regarding tariffs imposed on any country, provided the President certifies that the exemption serves the US national interest.
